TRADE OUTLOOK

Evening Post, Volume CXII, Issue 97, 21 October 1926, Page 12

TRADE OUTLOOK

&ARD WORK AND CAUfION

i SM-VE* LINING TO THE CLOUD i

yjWSVJBW BY PRESIDENT OS! \fJMPLOYERS' FEDERATION. ■i In his address at the annual •meeting of the New Zealand Em■ployers' Federation to-day, the president, the Hon. T. Shailer Weston, M.L.C., gave a comprehensive re- . . l^view of the trade and general industrial position of the Dominion ■to-day, and expressed some interesting views on the present out,look. ,' "The present trade outlook," said Mr. Weston, "no doubt, calls for hard .■work and caution. The seamen's strike of last year has left the dairy and meat companies with accumulations of unsold stocks. On top of this the English coal strike, even if settled shortly, Eas curtailed and will curtail for many months yet the demand for these products. This has accentuated, the fall in their prices, which has been foretold for some years past, and which the resumption of the gold standard last year made inevitable. "There is, however, a silver lining to this cloud. The dairy farmers with practical common-sense have individually grasped the situation, and by better farming, herd culling, and an extensive use or manures are doing their utmost to make up for lower prices by increased production. The recovery ■ from the 1921 slump was much helped by the efforts of the dairy farmer. Let us hope he will play as good a part in tie next two years, and receive the reiward his pluck and industry deserve. Morepwr, there have b^een no serious labour stoppages in New Zealand during the present year. This also is a good omen. It cannot be. reiterated too often 'that at the present time industrial strife is a luxury which will assist neither the country as a whole nor the worker. With the commencement irrf an era of falling prices, both employers and workers must realise that increases in money wages and money profits will be exceptional. Lower prices mean a diminished turnover, and hence a smaller fund out of which to provide money wage 3 and money profits. Money wages and money profits, can only be retained at their present rates by increased effort on the part of the worker, and improved and more economical management on the part of the employer. The business man who can still show the same net return can congratulate himself. LAND VALUES. "To-day's patriot is the man who assists in making two blades of grass grow in lieu of one. The Government toy materially helping a reduction in the price of fertilisers and putting at .the disposal of farmers the best agricultural advice and means of improving their stock, are assisting in the only manner that in the present cir-. eumstances counts. They have been reproached for not attempting extensive land purchases and subdivision, but, to anyone in touch with farming realities, it is clear such efforts at the present time would only have the same unfortunate results as the land settlemen scheme for soldiers in 1919. No Government can purchase land on as favourable terms as individuals. Land values have not yet become stabilised on the basis of production. There are many shrewd farmers with the means to buy land still waiting for the right moment until farm values have reached a level in which buyers can have confidence. It would be unwise for the Government to enter the market. By giving a temporary fillip to the land market it would only put off the readjustment of values which is necessary before a steady market for rural land can be jestored. ASSISTING FARMERS. "To settle one man on the land with sufficient stock even at reasonable prices would cost from £3500 to £5000. At this rate to settle 2000 men,on the land would necessitate the Government borrowing from £7,000,r 000 to £10,000,000. It is not everyone without money who can make a profitable use of money when it is lent to him. Until a man by accumulating some.capital'of his own shows that he has some of the virtues, notably thrift and industry, necessary for success, it is a big experiment to furnish him by State aid with greater financial resources than those possessed by many 'hard working farmers who have had to 'rely upon their own private efforts. The iDominion is to be congratulated that ithe men in charge of the land policy of the Government are determined not =to take any step, forward, however strongly urged by popular opinion, unless that step forward is to be ultimately and finally of some real advantage to the country and to the individual. "From 1893 to 1920, a period of 27 years, rural lands in New Zealand slowJy but steadily increased in value. Consequently, credit, however lavish, given to individual farmers, seldom led to losses by the lender. If an individual failed as a farmer, the rise in the value of his land protected the lender. In the final result it became almost the custom for men with slender .resources to obtain dangerously large advances to purchase farms and stock. When the era of advancing prices ceased the essential unsoundness of the practice at once became apparent. The lesson has cost lenders dearly; £.500 capital in some cases enabled a man to become' the owner of £10,000 worth of land and stock. The slump in 1921 ended this practice once and.for all, and lenders learnt wisdom through heavy losses. The problem still remains: how is the man with very limited capital to obtain land? The solution would seem to be in more share-milking agreements and leases of private land. A man with sufficient capital to stock a farm but not sufficient to buy land must be content with the latter; the man worse off with the former. To make this a success the land owner must be prepared to.give reasonable' terms, while ;,the share milker and the tenant, as the J case may be, must learn to treat the lland and stock entrusted to him with !tfee same care and attention as if it were 'his own. The fact that for some years to come rural land values are not likely to rise will assist to make men more content to do without the freehold of ' the lands they farm. There will be no jor only a small unearned increment for jthem to lose through not being the : owner. ■ _ 4 \IN THE INTERESTS OF ALL. ; "Some years ago I ventured to sug- • gest," remarked the president, "that 1 business men should make more use of 'the knowledge of our university economists. The Canterbury Chamber of 1 Commerce lias published during the last ,year some very interesting papers pre- ; pared by Professor Condliffe and his ; studentß. The Wellington Chamber of 1 Commerce is now arranging to malte some use of Professor Murphy's expert advice. Both are able men, and their theoretical knowledge of working in unison with the practical experience of business men should make an effective combination. "I have to thank the members of the Advisory Board, the executives of .the various associations, the federation staff, and association secretaries for their loyal and valuable assistance and co-operation during the past yenr. The policy of this federation and of the

Advisory Board has always been based on the belief that nothing in the long run will be of permanent advantage to' employers unless it is to the advantage ■cf the whole Dominion. The interests of both are intertwined. New Zealand as a whole is a happy country with a happy population.' Let it be tbo ob-ject of this federation and of all of us to strive to keep it so."